Ticket mega-merger could 'raise prices'

A proposed merger of Ticketmaster and Live Nation has run into difficulty, with competition authorities raising fears the move could lead to higher prices.

'Monopoly': The Competition Commission is wary of a Ticketmaster / Live Nation merger

Ticketmaster and Live Nation, whose acts include Madonna, Coldplay and U2, announced the planned merger in February, sparking a competition inquiry in the US.

Today the Competition Commission provisionally ruled against the tie-up of the ticketing giant and world's largest concert promoter, amid worries it would dominate the market, resulting in higher prices and a lower quality of service.

The authority said the move would encourage Live Nation to 'inhibit a significant potential rival' from entering the UK market.

Shortly before the merger was announced, Live Nation signed an agreement with the world's second-largest tickets firm, CTS Eventim, for ticketing of its live shows and venues in the UK.

The deal would have given CTS a foothold in the UK market but the Competition Commission said today a mega-merger between Live Nation and Ticketmaster would prevent this agreement from going ahead.

Christopher Clarke, the watchdog's deputy chairman, said: 'The merger with Ticketmaster means that Live Nation will have every incentive to inhibit a significant potential rival from entering the UK market and, given the significance to CTS of its agreement with Live Nation in deciding to enter the UK market, we believe that Live Nation would be able to do so.

'We believe that, if the merger proceeds, Live Nation will seek to limit its relationship with CTS, with the effect of putting CTS's future prospects in the UK in considerable doubt.'

The potential deal is thought to have attracted the anger of some major artists, including Bruce Springsteen, over fears of a near-monopoly on global live music ticketing.

As both groups are based in the US, the Competition Commission is unable to prevent the merger but it is considering moves such as forcing the firms to sell off one of their UK businesses. The watchdog could also introduce measures to ensure CTS, or another third party retailer, can act as an agent for many of Live Nation's tickets.

The Competition Commission will publish its final ruling on 24 November. It said it is working closely with its counterpart in the US and there is a possibility American authorities could block the merger.

Live Nation and Ticketmaster released a joint statement in which they pledged their continued co-operation with competition authorities, but insisted they were committed to the merger.

The firms said the music industry was at a 'decisive crossroad', with the recording sector 'a shell of its former self'.

'Where the recording industry was once the economic engine for the music business, it is live entertainment that is now the future of the music industry,' the statement read.

'We believe this merger will build a more efficient and effective company moving forward, and that working together we will be able to help achieve needed change that will strengthen a flagging music industry.'

The pair said they had listened to varying views on the challenges facing the industry from fans, artist and others.

They added: 'We firmly believe that our merger achieves an important and much needed public interest, and remain optimistic that it will ultimately be approved.'